Euro zone finance ministers also plan to link payouts to Greece of 1.2 billion euros a year until 2022 to continued implementation of reforms agreed under its bailout agreements, a document prepared for the ministers showed on Thursday.

"From now on we have targets and we commit to observe them, but it is at the discretion of each Greek government to select the means for achieving these targets", Tsipras said.

Europe's most indebted state will also be required to maintain a surplus before interest payments that's equal to 3.5 percent of its economic output and not accumulate arrears to vendors.

Athens has received €273.7 billion in assistance since 2010, enabling it to avoid punishing borrowing rates on debt markets.

Opposite the hardliners were France and the European Central Bank, which argued that reduced debt was crucial in order for Greece to gain the trust of the markets.

The agreement concluded overnight in Luxembourg by finance ministers from fellow members of the 19-member eurozone grants Greece a ten-year extension in repaying a large chunk of its crippling debt load.

While loan write-offs are not under consideration, euro zone ministers are considering extending maturities and grace periods by up to 15 years on the 130 billion euros extended to Greece under its second bailout.

"We will ensure that the pressure to implement further reforms remains strong.in the medium and long term", said Austrian Finance Minister Hartwig Loger.

The reform-pushing International Monetary Fund played an active role in the two first Greek bailouts but took only an observer role in the third in the belief that Greece's debt mountain was unsustainable in the long term.

A report in the German daily, The Local, said that while conservative parties in Germany warned that supporting Greece would come at the cost of the German taxpayer, new figures show Germany has made money on the crisis.

"This had been anticipated but it is a positive in terms of the debt relief to Greece and the cash buffer that they will be afforded, which is important because it provides a safety net and allows them to follow the path of Portugal post-bailout", said Rabobank strategist Richard McGuire.

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